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Argentina's economy contracts in Nov

  • Mercados: Agriculture
  • 21/01/26

Argentina's economy ticked back into contraction in November, throwing into question the government and IMF's goal of 5pc annual growth.

The economy contracted by an annual 0.3pc in November, according to the monthly economic activity estimate from the statistics institute, Indec.

That followed 3.2pc annual growth in October and 4.8pc growth in September. It peaked last year at 7.8pc annual growth in April.

November registered the worst monthly performance of 2025 and marked the first contraction since September 2024, when it fell by 2.4pc.

Manufacturing contracted by an annual 8.2pc in November, following a decline of 2.7pc in October. Construction contracted by an annual 2.3pc and trade was down by 6.4pc. Wholesale and retail trade contracted by 6.4pc. Fishing contracted by 25pc.

Financial intermediation grew by an annual 13.9pc in November, while agriculture and cattle raising grew by 10.5pc, slowing from 23.1pc in October. Mining growth slowed to 7pc.

President Javier Milei's administration forecasts 5pc growth for 2025, which includes a strong nod to continued expansion of export revenue from energy and mining.

Mineral exports were $6bn in 2025, up by 29.2pc, while energy exports reached a historic high to $11.1bn. Oil production also hit a historic high of 860,255 b/d, according to preliminary numbers from the energy secretariat. The previous record was 847,000 b/d from 1998.

The release of the November economic activity estimate coincided with president Milei's presentation at the annual World Economic Forum in Davos, Switzerland, where he pledged to continue deregulating the economy as the best way forward for growth. He said his government, in power since December 2023, had undertaken 13,500 structural reforms, "which have allowed us to have a more efficient economy" and return to growth.


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